Q1: Explain the three basic business function of any organization. What are the key business functions on supply side and demand side? (5 marks). Apply to a specific good or service with schematic representation (10 marks). Justify and critique answers (3 marks) Q2: From the table below showing actual and forecast values, answer the following: a) Compute forecast errors MAD, MSE, and MAPE (10 marks). b) Compute forecast values MA (3 most recent demands), WMA (weights of most recent period arc 0.40, 0.30, 0.20 and 0.10) and EMA (smoothing constanta -0.1). e) Contrast negative and positive errors in period 1 and 4 d) Contrast negative and positive actual value in period 8. ) Why we use absolute error instead of calculated negative or positive error? Why in MSE we square error, and why we divide error by Friderich Bessel n-1 instead of n? 8) How to obtain WMA weights and EMA smoothing constant? Why total sum of WMA weights must equal to 19 h) Which of MAD, MSE or MAPE do we use use in forecasting? Apply periods 1 and 4 to a specific good or service with schematic representation (10 marks). i) Critique and justify answers. Period Forecast 714 T 716 3 Actual 718 714 716 712 713 718 4 77 2T 3 6 71% 713 712 Study material is modified and compiled from various references, and is NOT the exclusive work of A. H. Hasb